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Realistbear

China Has Just Surpassed Germany For No. 3 Slot

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http://business.guardian.co.uk/story/0,,2131185,00.html

China overtakes Germany as world's No 3 carmaker

David Gow in Brussels
Friday July 20, 2007
Guardian Unlimited
China has overtaken Germany as the world's third-largest automaker and is closing in on Japan, the global number two, a new study has found.

With China able to churn out cars based on 10p an hour wages will Germany be able to compete or will they have to shut down operations as we have had to do in the face of global competition. With the Deutchsmark, er Euro, soaring will the Chinese begin to take market share away from Europe?

So much so quick.

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With the current batch of Chinese made cars you really do get what you pay for. Poor build quality, bad engineering, low efficiency the car's aren't cheap solely because of low wages, they are cheap because of cheap materials and little real engineering.

Should German and Japanese manufacturers worry? not today maybe in five to ten years time when China automotive inc starts to do quality. Should Latin American, North American and Korean manufacturers worry absolutely Chinese built cars are now offering near comparable build quality at far lower prices.

Edited by b0rk

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Germany produced 5.8m units in a year, but Toyota alone produced 4.72m in the first half. Does one Japanese car company alone produce more than the whole of Germany?

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Germany produced 5.8m units in a year, but Toyota alone produced 4.72m in the first half. Does one Japanese car company alone produce more than the whole of Germany?

IMO we are seeing a global shift away from Europe to the Pacific Rim nations from California-Western SA-Korea-Taiwan-Japan and, of course China. China is the "bad boy" here and Japan-Korea-US are forming an uneasy triumpherate to take China on through currency manipulation (Euro and Sterling overvaluation) and allowing the Chinese economy to overheat itself and collapse.

I cannot see how Europe will compete with the Pacific Rim when, in a few years as you suggest, they will have the capability of building high quality goods at a fraction of the cost. With our manufacturing base at 12% and sinking it is only a question of time before we have nothing left to trade as NS Oil will be long gone within a decade.

Edited by Realistbear

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I cannot see how Europe will compete with the Pacific Rim when, in a few years as you suggest, they will have the capability of building high quality goods at a fraction of the cost. With our manufacturing base at 12% and sinking it is only a question of time before we have nothing left to trade as NS Oil will be long gone within a decade.

Dunno, there is hairdressing, pizza delivery and McJobs to keep us going. There is always the "City" built on House finance and MEW!

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IMO we are seeing a global shift away from Europe to the Pacific Rim nations from California-Western SA-Korea-Taiwan-Japan and, of course China. China is the "bad boy" here and Japan-Korea-US are forming an uneasy triumpherate to take China on through currency manipulation (Euro and Sterling overvaluation) and allowing the Chinese economy to overheat itself and collapse.

I cannot see how Europe will compete with the Pacific Rim when, in a few years as you suggest, they will have the capability of building high quality goods at a fraction of the cost. With our manufacturing base at 12% and sinking it is only a question of time before we have nothing left to trade as NS Oil will be long gone within a decade.

but we DO have things to trade!!...the worlds best surveillance gear,spin as an art-form and lots of psychotherapists/psychometric testers.

...and if you want your cat feng-shui'd we are the people to talk to.

Edited by oracle

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IMO we are seeing a global shift away from Europe to the Pacific Rim nations from California-Western SA-Korea-Taiwan-Japan and, of course China. China is the "bad boy" here and Japan-Korea-US are forming an uneasy triumpherate to take China on through currency manipulation (Euro and Sterling overvaluation) and allowing the Chinese economy to overheat itself and collapse.

I cannot see how Europe will compete with the Pacific Rim when, in a few years as you suggest, they will have the capability of building high quality goods at a fraction of the cost. With our manufacturing base at 12% and sinking it is only a question of time before we have nothing left to trade as NS Oil will be long gone within a decade.

The vast majority of manufacturing in China is done for western and japanese firms.

Tell me 2 chinese companies that are household names in the west?

In fact tell me one and id be surprised.

(await posts....)

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The vast majority of manufacturing in China is done for western and japanese firms.

Tell me 2 chinese companies that are household names in the west?

In fact tell me one and id be surprised.

(await posts....)

I'm not sure that this is their economic goal. They are using the West and Japan as a slingshot mechanism to create the industry needed to eventually service their own domestic economy. Whenever a Western industry starts up in China, they are compelled into "partnerships" in which they are required to transfer intellectual property to the Chinese partner. In this way, they are edging closer to the leading edge in many industries, though they still have some ways to go. The situation is a bit like before the 1980's, many of Japan's exports were ridiculed and laughed at for their quality too, but they caught up. China is much more aggresive at acquiring foreign intellectual property than the Japanese ever were. I think that it is a safe bet that in twenty years from now, many of the global Fortune 100 companies will be Chinese, and many of these will not be household names in the West

Best,

L

Edit : typo

Edited by Luminist

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The vast majority of manufacturing in China is done for western and japanese firms.

Tell me 2 chinese companies that are household names in the west?

In fact tell me one and id be surprised.

Lenovo, you can after all pop into PC World, Dixons, Currys, John Lewis etc and buy one of their products...

VTech, children's electronic toys.

Hutchison Whampoa, They own the mobile network "Three".

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Lenovo, you can after all pop into PC World, Dixons, Currys, John Lewis etc and buy one of their products...

VTech, children's electronic toys.

Hutchison Whampoa, They own the mobile network "Three".

I guess you can count about 50% of HSBC as well

Best,

L

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IMO we are seeing a global shift away from Europe to the Pacific Rim nations from California-Western SA-Korea-Taiwan-Japan and, of course China. China is the "bad boy" here and Japan-Korea-US are forming an uneasy triumpherate to take China on through currency manipulation (Euro and Sterling overvaluation) and allowing the Chinese economy to overheat itself and collapse.

I cannot see how Europe will compete with the Pacific Rim when, in a few years as you suggest, they will have the capability of building high quality goods at a fraction of the cost. With our manufacturing base at 12% and sinking it is only a question of time before we have nothing left to trade as NS Oil will be long gone within a decade.

Indeed, the joy of globalisation! I agree too, and I do not see how the so-called evolution of the UK ecomony (Instrustial > Service > Knowledge) is going to offer any protection as the economies of China and India will also have the infrastructure and population base (both size and good rich/poor divide) to be knowledge and service powerhouses aswell. India already seem to be accelerating on the service sector side.

With our high inflation and wage inflation, we are just moving further away from being in a competitive position and rather than the issue of out global competitiveness being a national issue for future planning, it seems like it doesn't even exist as a concern. Feels like a case of heads-in-the-sand, unless there is something that will combat these trends which I am just totally unaware of?

AFP

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http://business.guardian.co.uk/story/0,,2131185,00.html

China overtakes Germany as world's No 3 carmaker

David Gow in Brussels
Friday July 20, 2007
Guardian Unlimited
China has overtaken Germany as the world's third-largest automaker and is closing in on Japan, the global number two, a new study has found.

With China able to churn out cars based on 10p an hour wages will Germany be able to compete or will they have to shut down operations as we have had to do in the face of global competition. With the Deutchsmark, er Euro, soaring will the Chinese begin to take market share away from Europe?

So much so quick.

how labour intensive is making cars?

if only 5% or 10% of the cost is labour then the strength of the currency doesn’t matter too much.

currency level only impacts the cost of labour.

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I heard that it costs Honda almost the same amount to build a car in China as it does in Japan. Cheap labour is offset by poor infrastructure.

Also, as someone said above much of the production in China is by foreign firms. Chinese carmakers will probably get there in the end but right now there are concerns about how long it will take. At the moment, they can build cars okay but the quality is poor. Hyundai is a good comparison. Arguably, they were Chinese car brands are now 20 years ago. Today, they're a pretty successful car company but it's not been them which has squeezed Ford and GM. It's the Europeans to an extent and especially the Japanese.

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GM has trouble making its US plants make money. In China GM has a profitable factory making cars and light vans which sell for £2000. The writing is on the wall for US and European car production.

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The vast majority of manufacturing in China is done for western and japanese firms.

Tell me 2 chinese companies that are household names in the west?

In fact tell me one and id be surprised.

(await posts....)

Its the name behind the brand that counts. The West stick on the label and China builds the product.

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Guest vicmac64
Its the name behind the brand that counts. The West stick on the label and China builds the product.

Yes this is correct however where does the money come from to purchase the cars - we are seeing that part of the component collapsing before our eyes - the false economy based on property is falling and with it mass unemployment will come - or hyper inflation. More than likely a combination of both.

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